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I think there's a bit of talking past one another here. Certainly the many Americans who have retirement plans benefit from stocks increasing, as do the very we

I think there's a bit of talking past one another here. Certainly the many Americans who have retirement plans benefit from stocks increasing, as do the very wealthy who own large shares of stocks in non-retirement earnings. However, the context of the discussion is over what term. The markets are subject to boom and bust cycles. Over the 40 or so year term of retirement plans, there's not a whole lot that a 20 or 30-something can do to benefit from a clearly bull market. I know that day-to-day, I'm not wealthier or better off because the stock market is doing well. My paycheck doesn't change. I can't sell any stocks to cash in. And that is the context of the discussion: not that over the long term stocks go up and when you retire you reap the benefits, but rather that over the short term, 90% of the people don't suddenly get enhanced quality of life because the stock market is doing well.

tathougies 7y ago
I mean a good stock market makes it easier for companies to raise funds and thus to expand and employ more people. The purpose of the stock market is ultimately not to provide and asset class so much as it is to ease raising large amounts of money companies need to grow.
- asdff 7y ago
  When companies raise funds, are they generally expanding and hiring these days or buying back their own stocks? Workforce have been shrinking for probably 100 years. Trickle down is fantasy.
  - uerobert 7y ago
    Why the hell would companies sell their stock to raise money to buy their own stock again? That doesn't make sense. If they want to do stock buybacks they just borrow money to do it, but only if interest rates are low enough. In most cases when companies raise money by selling stock you can bet its to expand, by making capital investment, raising headcount, acquisitions, etc. Either at that moment or the near future.

tathougies 7y ago

I mean a good stock market makes it easier for companies to raise funds and thus to expand and employ more people. The purpose of the stock market is ultimately not to provide and asset class so much as it is to ease raising large amounts of money companies need to grow.

asdff 7y ago
When companies raise funds, are they generally expanding and hiring these days or buying back their own stocks? Workforce have been shrinking for probably 100 years. Trickle down is fantasy.
- uerobert 7y ago
  Why the hell would companies sell their stock to raise money to buy their own stock again? That doesn't make sense. If they want to do stock buybacks they just borrow money to do it, but only if interest rates are low enough. In most cases when companies raise money by selling stock you can bet its to expand, by making capital investment, raising headcount, acquisitions, etc. Either at that moment or the near future.